Trading shares may be exciting, but it's usually the boring stuffs that make money consistently.
Dear Boring investor,I am 30 year old male. Would like to thank you for your insights on investing. I am noob and looking to step into investment. I have thought about starting off with the POSB investor plan. Monthly buying into Nikko AM STI ETF at SGD500. May i have your insights?regards,email@example.com
Hi Jude,I'm glad that you're making your first step into investment. What you have suggested, Dollar Cost Averaging & index investing, is a sound strategy. I have used it for my unit trust investments.
Hi! My name is James. Currently I am running an aggregation blog to help to boost traffic of each other. I have come across your site and have added your link in my aggregator blog. It would be great if you can add my link in your blog as well. My blog link is https://wwwaggregator.blogspot.sg/Thank You.
Hi James,Thks for your invitation. But I don't usually exchange links. Those blogs that you see on my blog list are added without any conditions after following them for a long time.
Hello, I have some questions regarding preference shares and hope you can enlighten me. Let's say I purchase some DBS preference shares off SGX at the prevailing market price. Do I earn interest on the principal I have put in minus brokerage/cdp charges. Secondly, if DBS decides to redeem early, will I get back the principal amount I put in or is it at a price DBS decides? Thanks for your time!
Hi Mr Lim,The interest is computed based on the bond's principal (i.e. $100) instead of the price bought on the market.In the event of redemption, it will be at $100. You will also get the interest for the period since the last interest payment.
Hi Chin Wei,I read about your post on DCA passive investing using indexed funds. Seems like it works well for you :)I'm also planning to do the same. I have allocated 40/40/20, Nikki Am STI ETF/ Infinity US 500 index fund /ABF bond ETF.I wish to check the the infinity US500 index fund unit trust, how does the annual management fees and expense ratio work out? They deduct these expenses in the daily pricing or do we need to fork additional out of pocket? I'm just concern how it will affect the returns.Oh ya, I'm using dollardex for unit trust, so there won't be platform fees :)Look forward to your advice!
Hi Ching Foo,Yes, DCA has worked for me and I'm sure it will work for you too!The annual mgt fee will be deducted from the daily pricing, so it is not an out-of-pocket expense. The mgt fee is quite low at 0.475%. As this is an equity fund, the expected annual return is 7-10%. As a percentage of annual return, the mgt fee works out to be around 5-7%, which is low for unit trusts.